Almost one in 10 millennials do not expect to ever buy their own home according to a new survey which reveals the financial problems young people face getting on the property ladder.
The research by online investment platform rplan.co.uk revealed that while two in five millennials (40%) expect to own a property by the time they are 30 and another 20% by the time they are 35, 17% believe it won’t happen until they are 36-50.
Around three in 10 millennials still live at home with their parents, including 54% of 18-24 year olds and 21% of 25-34 year olds.
The latest figures from Nationwide show that the average price of a property in the UK has risen to £196,829.
There are fears that first-time buyers are being squeezed out of the market due to the dwindling supply of suitable homes and ballooning property prices.
Tougher affordability checks from lenders and rising house prices have made it increasingly difficult for first-time buyers with smaller deposits to get on the property ladder.
Nick Curry, Director at rplan.co.uk, said: “Our research reveals the financial difficulties faced by a substantial minority of millennials. It is essential that they are given as much help and incentives to save for their future as possible. Initiatives such as the Help to Buy ISA for first time buyers are great but our society needs to look at what more can be done.
“One advantage that millennials do have is time and those who can save for their future should consider the benefits of investing in a diversified portfolio over the long term rather than saving into cash accounts when interest rates are set to stay low for many years.”
A recent study by think-tank the Resolution Foundation found that the housing ladder is rapidly disappearing for most young working households on modest incomes.
According to the research, over-45s now account for three-quarters of all home owners and that only one in 10 young people are likely to be on the property ladder in 2025.
Home ownership has been falling slowly since the start of the century following a period of steady increase from the 1950s onwards and currently stands at around 63% today.
The government has introduced a number of new schemes in recent years to help those looking to buy a home, including Help to Buy and Right to Buy. In the Autumn Statement last year, Chancellor George Osborne unveiled plans to build 400,000 homes and announced a 3% rise in stamp duty as part of the government’s aim to curb the buy-to-let sector.
